At the end of January 2018, the price of Crush Crypto Core (CCC) was $3.6572, representing an increase of 14.7% over the previous month.
CCC is a digital asset array on the ICONOMI platform. Starting with a $100,000 seed capital in October 2017, CCC had an asset under management of $3.9 million as of January 31, 2018.
In last month’s report, we commented that the market was overvalued.
We used Status as an example – at that time, it had a market cap of $1.5 billion. Subsequently, its market value went up to as high as $2.3 billion and dropped to as low as $460 million.
In crypto, because there is no supply response to price changes (token supply is fixed, you cannot mint more tokens when the price is good as opposed to other asset classes such as stocks or commodities), the volatility in this asset class is very pronounced, both on the way up and down.
It is difficult to call the top and equally as difficult to call the bottom. We will follow the famous saying of Warren Buffet: “Be greedy when others are fearful, and be fearful when others are greedy.”
There is still lots of greed in the ICO space, with people paying a few thousand dollars in gas fee in order to get into certain ICOs. This suggests that the overall sentiment can still deteriorate. On the other hand, the current market correction is mostly due to a technical standpoint and is not related to the fundamentals of cryptocurrency as a whole.
There are strong arguments from both bulls and bears. The best we can do is keep a balanced portfolio and keep looking for undervalued coins like we have done in the past few months.
We are happy to report that CCC appreciated by 14.7% while the cryptocurrency market as a whole dropped by 16.2%.
The coins in the CCC portfolio did not move in unison – there were a lot of discrepancies in performance.
Some coins appreciated (Ether +48%, Icon +44%, and Steem +71%) while others dropped (Bitcoin -28%, Monero -22%, Qtum -33%, Dash -34%, and Bitcoin Cash -41%).
Most tokens in the portfolio performed well. With the exception of Raiden (-6%), all other tokens appreciated (Funfair 0%, Everex +48%, Kyber Network +57%, and 0x +107%).
We have migrated the reserve currency for the portfolio from Bitcoin to Ether. This is because we believe the technology and use case for ethereum is better and wider than bitcoin. As a result, we are increasing the allocation of Ether to 20% (from 15%) and lowering the allocation of Bitcoin to 15% (from 20%, combining Bitcoin and Bitcoin Cash).
We went overweight on ICON in anticipation of the mainnet launch. So far, it is working against us because the market expected more from the summit that was held on January 31. However, now that the impatient holders have left, we remain bullish on the coin. We anticipate ICX will have quick adoption from one of the most educated countries in terms of cryptocurrency – Korea.
We went overweight with Kyber because (1) it is relatively undervalued compared to 0x, (2) its mainnet launch is coming soon. In fact, the development progress has been impressive and the team has been able to push forward the launch of mainnet to February 11. So far, it is a right call as Kyber strengthened against Ether during the crash.
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.